The US imposed sanctions on Cuba’s state-owned oil and gas company, Union Cuba-Petroleo (CUPET), on Thursday, blocking its property and interests within US jurisdiction, according to US Secretary of State Marco Rubio [1, 2]. The action targets CUPET for its role supporting Cuba’s communist government and is part of a broader pressure campaign launched under the Trump administration [2].

Rubio described CUPET as a tool for Cuba’s repressive security apparatus and accused Cuba’s ruling Castro family of profiting amid widespread energy shortages. "While the Cuban people have suffered fuel shortages and blackouts because of decades of under-investment in critical infrastructure, Cuba’s Communist leaders have diverted energy resources to line their own pockets," Rubio said [2]. He added that "as regular Cubans wait for weeks to fill their cars and suffer relentless blackouts, the Castro family flies around on a private jet, the government buses in fake protesters for publicity stunts, and the regime prioritizes keeping the power on in luxury tourist hotels" [2].

The US sanctions block CUPET’s assets and raise risks for foreign companies that do business with the company [1]. US officials cited that CUPET’s assets were originally unlawfully expropriated from American owners during the 1960 nationalisation of Cuba’s oil sector [2]. Although Cuba produces around 40% of its own oil domestically, the island nation is dependent on imports for the rest [2]. Since January 2026, Cuba has mostly stopped receiving oil imports apart from one Russian tanker delivery [2].

The sanctions coincided with a high-level video conference between senior Chinese and Cuban officials on June 11 to discuss bilateral cooperation and Communist Party ties [1]. This highlights the growing China-Cuba relationship amid increasing US sanctions pressure.

The US Treasury’s move reflects continuing tensions with Cuba’s Communist government months after President Trump’s administration ramped up sanctions targeting Cuban officials and entities. The US government is continuing to watch for further developments and enforcement actions related to CUPET.

The video conference between Chinese and Cuban officials was held on the same day as the sanctions announcement, June 11, 2026 [1, 2].